Has Crave experienced any losses in cash accounts where the cash held exceeded insured limits?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company maintains its cash in bank deposit accounts which could exceed federally insured limits. The Company has not experienced an instance where cash held in the account exceeded insured limits since their inception and have not had losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave maintains its cash in bank deposit accounts that may, at times, exceed federally insured limits. However, the company states that since its inception, it has not experienced any instances where the cash held in these accounts exceeded insured limits, nor has it incurred any losses in such accounts. Crave believes it is not exposed to any significant credit risk regarding its cash and cash equivalents.
This statement provides some reassurance to potential franchisees, indicating that Crave has been careful in managing its cash deposits and has not suffered losses due to exceeding insurance limits. However, franchisees should be aware that there is still a potential risk, albeit one that Crave considers insignificant. It is important to note that this statement reflects Crave's experience up to December 31, 2024, and future performance may vary.
Prospective franchisees may want to inquire about Crave's specific policies for managing cash deposits and mitigating the risk of losses due to exceeding insured limits. Understanding the details of Crave's cash management practices can help franchisees assess the financial stability of the company and make informed decisions about investing in a franchise.